Bitcoin's Value Is Demonstratively Linked To Illicit Use

This week saw the greatest argument so far for tying Bitcoin’s worth to the black market. The anonymous crypto-currency’s value plummeted Wednesday after federal law enforcement agencies shuttered Silk Road, an online black market used to buy and sell illegal drugs with Bitcoins. According to Mt. Gox , one of the most popular Bitcoin exchange services, the value of the virtual currency plunged from $140 to $129 on the same day Silk Road closed down. Mt. Gox's record of the value drop on Oct. 2. The blue line shows a spike in the volume of Bitcoins being traded as the value (the red-and-green line) drops. Bitcoin evangelists have long insisted that the currency really has nothing to do with illegal activity, but instead offers users lower fraud risk and increased privacy. But criminals have found that Bitcoin’s unregulated status makes it ideal for money laundering and the ...